S&P 500 Financials Sector: current P/E Ratio

17.69
Last update: 20 December 2024

The estimated P/E Ratio for S&P 500 Financials Sector is 17.69, calculated on 20 December 2024.

Considering the last 5 years, an average P/E interval is [12.97 , 15.50]. For this reason, the current P/E can be considered Expensive

P/E Ratio is calculated on the XLF Etf, whose benchmark is the S&P 500 Financials Sector.

Historical P/E Ratio

When evaluating the P/E Ratio, it's important to not only look at its absolute value but also compare it to the average of previous periods. This allows for a more comprehensive understanding of the index/market valuation.

The following chart shows how the S&P 500 Financials Sector P/E Ratio has changed over time. Furthermore, for some trailing timeframes, you can view the average P/E and standard deviation.

20 December 2024 · P/E Ratio: 17.69
20 December 2024 · P/E Ratio: 17.69 · 1Y Average: 16.79 · 1 Std Dev range: [15.91 , 17.67] · 2 Std Dev range: [15.03 , 18.55]
20 December 2024 · P/E Ratio: 17.69 · 5Y Average: 14.24 · 1 Std Dev range: [12.97 , 15.50] · 2 Std Dev range: [11.71 , 16.76]
20 December 2024 · P/E Ratio: 17.69 · 10Y Average: 13.52 · 1 Std Dev range: [12.56 , 14.48] · 2 Std Dev range: [11.59 , 15.44]
20 December 2024 · P/E Ratio: 17.69 · 20Y Average: 12.67 · 1 Std Dev range: [11.53 , 13.81] · 2 Std Dev range: [10.39 , 14.96]
Methodology
The Average P/E (μ) and the Standard Deviation (σ) are calculated excluding 20% outliers (i.e. over a range of values excluding 10% of observations from the top and 10% from the bottom of the dataset).
A P/E between (μ - σ) and (μ + σ) is considered "Fair", over a specific timeframe.
A P/E greater than (μ + σ) is defined "Overvalued", greater than (μ + 2σ) is defined "Expensive".
A P/E less than (μ - σ) is defined "Undervalued", less than (μ - 2σ) is defined "Cheap".
20 December 2024 · P/E Ratio: 17.69 · Last Periods metrics
Show all periods
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Range
Analysis
Period Average P/E
(μ)		 Std Dev
(σ)		 Std Dev Range
[ μ-2σ · μ-σ , μ+σ · μ+2σ ]		 vs Current P/E
( 17.69 )		 Deviation
vs μ		 Valuation
Last 1Y 16.79 0.88 [15.03 · 15.91 , 17.67 · 18.55]
+1.03 σ
Overvalued
Last 2Y 15.49 1.67 [12.14 · 13.82 , 17.17 · 18.84]
+1.32 σ
Overvalued
Last 3Y 14.45 1.67 [11.12 · 12.79 , 16.12 · 17.78]
+1.95 σ
Overvalued
Last 4Y 14.37 1.34 [11.68 · 13.03 , 15.71 · 17.05]
+2.48 σ
Expensive
Last 5Y 14.24 1.26 [11.71 · 12.97 , 15.50 · 16.76]
+2.74 σ
Expensive
Last 6Y 13.65 1.43 [10.80 · 12.23 , 15.08 · 16.50]
+2.83 σ
Expensive
Last 7Y 13.55 1.32 [10.90 · 12.22 , 14.87 · 16.19]
+3.13 σ
Expensive
Last 8Y 13.50 1.14 [11.21 · 12.35 , 14.64 · 15.79]
+3.67 σ
Expensive
Last 9Y 13.43 1.05 [11.34 · 12.38 , 14.48 · 15.53]
+4.06 σ
Expensive
Last 10Y 13.52 0.96 [11.59 · 12.56 , 14.48 · 15.44]
+4.35 σ
Expensive
Last 11Y 13.46 0.86 [11.74 · 12.60 , 14.32 · 15.18]
+4.92 σ
Expensive
Last 12Y 13.33 0.89 [11.56 · 12.45 , 14.22 · 15.11]
+4.92 σ
Expensive
Last 13Y 13.13 0.99 [11.15 · 12.14 , 14.13 · 15.12]
+4.60 σ
Expensive
Last 14Y 12.98 1.06 [10.85 · 11.91 , 14.04 · 15.10]
+4.44 σ
Expensive
Last 15Y 12.99 1.11 [10.77 · 11.88 , 14.10 · 15.20]
+4.25 σ
Expensive
Last 16Y 13.00 1.16 [10.68 · 11.84 , 14.16 · 15.32]
+4.05 σ
Expensive
Last 17Y 12.87 1.20 [10.47 · 11.67 , 14.08 · 15.28]
+4.00 σ
Expensive
Last 18Y 12.78 1.19 [10.40 · 11.59 , 13.97 · 15.16]
+4.13 σ
Expensive
Last 19Y 12.71 1.16 [10.39 · 11.55 , 13.88 · 15.04]
+4.29 σ
Expensive
Last 20Y 12.67 1.14 [10.39 · 11.53 , 13.81 · 14.96]
+4.40 σ
Expensive

S&P 500 Financials Sector Trend

Trend is evaluated considering the price of the XLF Etf and its 200/50-day moving averages (SMA).

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 +10.17% 20 Dec
Short Term Price vs SMA50 -0.60% 20 Dec
The 200-day moving average is a long-term indicator that takes into account the average price of a stock over the past 200 trading days. It is considered a significant level of support or resistance, meaning that when the stock price is above the 200-day moving average (i.e. margin vs moving average is positive), it is generally viewed as bullish, while when it is below, it is viewed as bearish.

The 50-day moving average, on the other hand, is a shorter-term indicator that measures the average price of a stock over the past 50 trading days. It is also viewed as a significant level of support or resistance and can be used to identify shorter-term trends.